Description of the diversity concept for the composition of the Board of Management and Supervisory Board
The Supervisory Board, with the support of the Human Resources Committee and the involvement of the Board of Management, carries out long-term planning for appointments to the Board of Management. In its meeting on 27 September 2018, the Supervisory Board agreed the following diversity plan for the composition of the Board of Management, incorporating the recommendations of the German Corporate Governance Code:
1. Description of the diversity plan
The Supervisory Board has developed the following diversity plan for the composition of the Board of Management in accordance with section 289f (2) no. 6 HGB:
In addition to basic suitability criteria such as good character, integrity, outstanding leadership qualities, professional expertise needed for the member’s specific remit, proven track record, knowledge of the Company and the ability to adapt business models and processes to the needs of a changing world, the Supervisory Board also considers diversity when selecting candidates for a position on the Board of Management. The Supervisory Board regards diversity as meaning, in particular:
- appropriate gender representation
- an adequate mix of ages among the members of the Board of Management
- a range of educational backgrounds and occupations.
2. Objectives of the diversity plan
The objective of the diversity plan for the Board of Management is to consciously harness diversity as a means of driving the Company forward. After all, taking account of different perspectives, skills, backgrounds and experience will be key to maintaining our competitiveness and success over the long term. Diversity within the Board of Management will, in particular, help us to better understand new business models and the wide-ranging expectations of our customers from around the world.
3. Manner of implementation
The Supervisory Board takes particular account of the following aspects with regard to the composition of the Board of Management:
- Members of the Board of Management should have several years of managerial experience.
- Members of the Board of Management should bring experience from a wide range of occupations and professional backgrounds.
- The Board of Management collectively should have technical expertise, particularly knowledge and experience of manufacturing and sales of all types of engines and of other technical products, as well as international experience.
- The Board of Management collectively should have many years’ experience in the areas of research and development, production, sales, finance and human resources.
- The Board of Management collectively should have international experience.
- The Supervisory Board has formally agreed a target quota in accordance with the Law for the equal participation of women and men in managerial positions in the private and public sectors. The resolution stipulates that there should be at least one woman on the Board of Management of DEUTZ AG on 30 June 2022.
- An age limit of 65 (standard retirement age) applies in principle to the members of the Board of Management.
The Supervisory Board determines which candidate should be offered a specific position on the Board of Management. Its decision is based on the best interests of the Company, taking all the circumstances of the individual case into account.
4. Current composition
As well as many years of experience within the Group, the members of the Board of Management also have extensive knowledge and experience – some international – from various activities outside DEUTZ AG. In its current composition, the three-person Board of Management meets all the specified targets apart from that regarding the proportion of women. The current age range on the Board of Management is 52 to 57 years. The average age of the Board of Management members is 54.